Bank of America enables higher-value real-time payments following $10 million cap increase - Trade Treasury Payments

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Bank of America enables higher-value real-time payments following $10 million cap increase

Bank of America has extended real-time payment functionality to support transactions of up to $10 million, in line with a recently announced cap increase by The Clearing House. The shift is already reflected in client behaviour, with transactions above the previous $1 million limit now accounting for a majority of the value processed through the bank’s RTP® platform.

The RTP network, which enables immediate settlement and confirmation, is designed for continuous operation – 24 hours a day, 365 days a year. The updated limit expands the potential use cases beyond routine disbursements to include higher-value applications such as M&A activity and intercompany transfers.

AJ McCray, head of Global Payments Products at Bank of America, said, “Our clients have been using RTP to pay vendors, employees and customers, but the larger cap has opened up use cases for different kinds of transactions, such as real estate and deal closings and other corporate activity.”

Bank of America is one of the first institutions to offer RTP at the updated cap. The bank played an early role in designing the network, coordinating with peer institutions, technology partners, and US monetary authorities. According to internal data, transactions above $1 million now represent more than 50% of the RTP transaction value processed by the bank.

The RTP system is built on ISO 20022 messaging standards. This means that detailed remittance information will accompany each payment, making it easier for originators to reconcile transactions. For recipients, funds are available within seconds, regardless of day or time.

Jay Davenport, co-head of Global Corporate Sales at Bank of America said, “The instant nature of real-time payments is a huge advantage for optimising working capital and cashflow. RTP payments embody some of the most commonly requested features from our customers – convenience, transparency and resiliency.”

As adoption scales, Bank of America expects increased uptake in just-in-time supplier payments, cross-entity transfers, and automated cash pooling. RTP is offered alongside other corporate payment tools, including ACH, wire, commercial card, and FX. Clients also have access to proprietary offerings such as Recipient Select and Digital Disbursements.

Bank of America currently services 94% of the Fortune 500 and 73% of the Global Fortune 500.